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What are the advantages and disadvantages of oligopoly? How does monopolistic competition differ from oligopoly? Write an example of an oligopoly and one of monopolistic competition.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What are the advantages and disadvantages of oligopoly? How does monopolistic competition differ from oligopoly? Write an example of an oligopoly and one of monopolistic competition.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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